US asset manager Legg Mason announced that it has agreed to acquire a majority equity interest in Rare Infrastructure, Ltd., (Rare) a global infrastructure asset manager headquartered in Sydney, Australia.
Rare has offices in Sydney, Melbourne, London and Chicago and specialises in global listed infrastructure investments, managing $7.6bn (€6.8bn) for institutional and retail clients.
Under the terms of the transaction, Legg Mason will acquire a 75% ownership stake, the Rare’s management team will retain a 15% equity stake and The Treasury Group, a previous minority owner, will retain 10%.
Joseph Sullivan, chairman and CEO of Legg Mason, said, “Rare’s investment expertise has strong relevance for many clients today, meeting important investment objectives including income, growth, diversification and capital preservation. The market for infrastructure investing has grown significantly over the past few years and RARE has participated in this growth, particularly in early adopter markets like Australia and Canada.”
Rare will operate as a core independent investment affiliate along with Brandywine Global, ClearBridge Investments, Martin Currie, the Permal Group, QS Investors, Royce and Associates, and Western Asset Management.